YES

(VAR x0 x1 x y z)
(RULES
  or(&(x0,x1),x1) -> &(or(x0,x1),x1)
  or(x0,&(x1,x0)) -> &(or(x0,x1),x0)
  or(x,x) -> x
  &(x,x) -> x
  or(&(x,y),&(z,y)) -> &(or(x,z),y)
)

(COMMENT
Termination is shown by LPO with precedence:

  or > &
)